Verizon approved to borrow $5B

Verizon New York Inc. has been given approval to issue and sell up to $5 billion in long-term debt securities as part of a five-year financing plan, Verizon said.

The state Public Service Commission approved the request today. The company said it now has the financial flexibility it needs to pay off short-term debt, refinance long-term debt and fund construction projects.

“The competitive nature of the telecommunications environment in which Verizon operates, where it has no assurances of recovering incurred costs, justifies the continuation of a flexible, multi-year financing approach,” said Commission Chairman Garry Brown. “As we have observed, the extraordinarily competitive telecommunications market place will continue to influence efficiencies and, therefore, Verizon’s continual pursuit of optimal financing strategies is fully warranted.”

The PSC also granted Verizon added flexibility to establish new promotional programs for residential customers without having to seek additional approval. Beginning April 15, Verizon will be able to set up new residential promotional offerings without regulatory approval.